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New GL

Former Member
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Hello ALl,

We are using classic GL in SAP ecc6 ,

Now the client to plan to introduce the new GL concept,

Pleasse brief about the difference and benefits of of NEW GL doc splitting from Classic GL .

What could be the benefits on Reporting part AND IFRS System,

Whether CLassic GL can be support to IFRS or NEW GL Will help More.

Suggest

Accepted Solutions (0)

Answers (3)

Answers (3)

krishnakishore_gaddam
Contributor
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Hi,

Regarding Document splitting In the New GL scenario, for each financial account document, document splitting functionality applies account assignment information (profit center) to the non-assigned GL accounts (Vendor, Customer and Tax line items in particular and any other accounts not assigned due to any reasons, in general).

Document splitting function is based on the following model.

Accounting documents, in most of the cases, contain GL accounts with assignments. That is, accounts of expenses and revenues. Such accounts (i.e. Expenses or revenues) do provide dependent GL accounts (i.e. Accounts payables, Account receivables and tax accounts) with account assignments (profit center) based on the context (i.e. invoice or payment). Account assignments from original processes are supplied to the subsequent processes.

For example, Account assignment (profit center) is passed on from GR/IR account to Vendor line item in invoice and the profit center from invoice is passed on the vendor line item in payment.

IFRS using Classic and New GL.

Using New GL functionality you can create a separate ledger(leading or non leading) for IFRS reporting compliance that update automatically during your postings. It will eliminate periodic process.

If you want use the classic GL you have 3 options

1-Create SPL for IFRS compliance

2-Create a new company code for IFRS reporting

3-Create new GL structure which supports IFRS compliance

SPL is the better option if you want classic GL.

Regards,

Krishna Kishore

Former Member
0 Kudos

Hi Prem,

Please refer the following SAP Best Practices document:

Name of the File: AC206_EN_col52_fv_part_a4.pdf

AC206

Parallel Valuation and Financial Reporting:

Local Law - IAS (IFRS) / US-GAAP?

THE BEST-RUN BUSINESSES RUN SAP

Hope that this document will provide complete informatio.

Regards,

GB

Former Member
0 Kudos

Hi,

Do you have access to these documentation? if yes, could you please help forward this?

or if you could help me find these?

Regards

Aashish Kedia

Former Member
0 Kudos

Hi,

Benifits of NEW GL

The new General Ledger in mySAP ERP has the following advantages over the classic General Ledger in R/3 Enterprise:

a) In the new General Ledger, you can display the parallel accounting using parallel accounts (as in R/3) or using parallel ledgers. The FI standard functions and reports are available for all parallel ledgers.

b) The 'Segment' entity and the relevant reporting that are required for segment reporting according to IAS and U.S. GAAP are available in the new General Ledger.

c) In addition, you can enhance the new General Ledger flexibly, that is, you can enter user-defined fields and update the relevant totals. Many standard reports can evaluate the information from the user-defined fields.

d) When you use the new 'Document Splitting' function (online split), you can create financial statements at company code level and, if required, for entities, such as the segment. For each document, the system then creates a zero balance

for the relevant entity, for example, for the segment.

e) As a result, you no longer have to carry out time-consuming reconciliation tasks between FI and CO for the end of period since cross-entity processes are transferred in real-time to the new General Ledger in Controlling. Furthermore, you can, for example, navigate from the financial statements report results or the profit and loss statement report results to the relevant CO report.

f) The new General Ledger uses the same interfaces as the General Ledger in R/3. As a result, users do not require any additional training.

g) Due to the new 'multi-dimensional' aspect in the General Ledger, all data that is relevant for the General Ledger is stored in one environment. As a result, reconciliation tasks, for example, between the general ledger and Profit Center Accounting or the consolidation staging ledger, and processing steps that have to be carried out repeatedly in the individual applications (for example, balance carryforward are no longer required. When you use the new General Ledger, you may not have to use the special ledger anymore.

http://help.sap.com/erp2005_ehp_03/helpdata/EN/29/830e405c538f5ce10000000a155106/frameset.htm

regadrs

Edited by: santosh kumar on Dec 14, 2009 8:17 AM